Overview
- Kevin Warsh, confirmed Wednesday by a 54–45 Senate vote, will take over when Jerome Powell’s chair term ends Friday, and Powell plans to remain on the Fed Board as a governor.
- The tally fell largely along party lines in what Bloomberg described as the narrowest confirmation for a U.S. central bank chief.
- Warsh has pledged to protect the central bank’s independence and said he would not be a puppet of President Trump.
- He has signaled a shift toward a smaller portfolio of bonds, less advance signaling about future rate moves, and decisions guided by fresh data.
- With inflation near 3.8% after an oil-price shock tied to the Iran conflict, many economists expect the deep rate cuts sought by the White House to be unlikely in the near term.